OMCs explain stable fuel prices.

THEstable prices of fuel in the country is as a result of zero rating of value added tax on petroleum products by Government, says Oil Marketing Companies Association of Zambia (OMCAZ) president Kafula Mubanga.

Dr Mubanga said Zambia was one of the countries in the region with low prices of fuel following the incentives OMCs were enjoying.

"The incentives that our Government has initiated such as zero rating of value added tax on fuel imports have helped in maintaining fuel pump prices despite an increase on the international market," he said.

He said Zambia had maintained the stable fuel pump prices even after a sharp increase of prices on the international market.

Dr Mubanga however said OMCs were currently engaging Government to get a rebate so as to ensure a stable supply of the commodity.

"We still believe Government has a wider base on which it can further caution the impact of price escalation on the global market and ensure a stable supply of the commodity," Dr Mubanga said.

He said most OMCs had developed relationship with refineries that would enable them access fuel at stable prices for a certain period of time.

Meanwhile, Dr Mubanga said the fuel shortage being experienced in some parts of the country would come to an end next week.

"The country is expecting fuel that will cover over 70 per cent of the national demand and this entails that there will be a stable supply of the commodity," Dr Mubanga said.

Dr Mubanga said the country was expecting over 70 per cent of fuel demand.